Federal Register / Vol. 88, No. 248 / Thursday, December 28, 2023 / Rules and Regulations 89595 

1See 46 CFR 136.130—Options for documenting 

compliance to obtain a Certificate of Inspection. 

2The TSMS option is a voluntary inspection 

option that permits qualified third-party 

organizations to conduct certain vessel 

examinations in place of Coast Guard inspections. 

See 46 CFR part 138—Towing Safety Management 

System (TSMS). 

3See 81 FR 40005. We discuss a recent statutory 

exception for TSMS-option vessels below. 

EPA-APPROVED NEW YORK STATE REGULATIONS AND LAWS

State citation Title/subject State effective 

date 

EPA approval 

date Comments 

*******

Title 6, Part 202, Subpart 

202–2.

Emission Statements ............. 12/18/2020 12/28/2023 • EPA approval finalized at [insert Federal 

Register citation]. 

* * * * * * * 

* * * * * 

[FR Doc. 2023–28343 Filed 12–27–23; 8:45 am] 

BILLING CODE 6560–50–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

46 CFR Part 2 

[Docket No. USCG–2018–0538] 

RIN 1625–AC55 

User Fees for Inspected Towing 

Vessels 

AGENCY: Coast Guard, DHS. 

ACTION: Final rule. 

SUMMARY: The Coast Guard is updating 

its user fees for seagoing towing vessels 

that are 300 gross tons or more and 

revising user fees for other inspected 

towing vessels. The Coast Guard is 

issuing these updates because it is 

required to establish and maintain a fair 

fee for its vessel inspection services and 

to separate the fees for inspection 

options that involve third-party auditors 

and surveyors from inspection options 

that do not involve third parties. Under 

this final rule, owners and operators of 

vessels using the Alternate Compliance 

Program, Streamlined Inspection 

Program, or the Towing Safety 

Management System options will pay a 

lower fee than vessels that use the 

traditional Coast Guard inspection 

option. 

DATES: This final rule is effective March 

27, 2024. 

ADDRESSES: To view documents 

mentioned in this preamble as being 

available in the docket, go to https://

www.regulations.gov, type USCG–2018– 

0538 in the search box and click 

‘‘Search.’’ Next, in the Document Type 

column, select ‘‘Supporting & Related 

Material.’’ 

FOR FURTHER INFORMATION CONTACT: For 

information about this document call or 

email Ms. Jennifer Hnatow, Coast 

Guard; telephone 202–372–1216, email 

Jennifer.L.Hnatow@uscg.mil. 

SUPPLEMENTARY INFORMATION: 

Table of Contents for Preamble 

I. Abbreviations 

II. Basis and Purpose 

A. The Problem We Seek To Address 

B. Legal Authority To Address This 

Problem 

C. Recent Legislation 

III. Background 

A. Origins of Annual Vessel Inspection 

Fees 

B. Current Fees for Towing Vessels Subject 

to 46 CFR Subchapters I and M 

IV. Discussion of Comments and Changes 

V. Discussion of the Rule 

A. Categories of Annual Fees 

B. Amending Annual Inspection Fees for 

Seagoing Towing Vessels Subject to 46 

CFR Subchapter I 

C. Establishing Specific Annual Inspection 

Fees for Towing Vessels Subject to 46 

CFR Subchapter M 

D. Methodology for Calculating Fees 

VI. Regulatory Analyses 

A. Regulatory Planning and Review 

B. Small Entities 

C. Assistance for Small Entities 

D. Collection of Information 

E. Federalism 

F. Unfunded Mandates 

G. Taking of Private Property 

H. Civil Justice Reform 

I. Protection of Children 

J. Indian Tribal Governments 

K. Energy Effects 

L. Technical Standards 

M. Environment 

I. Abbreviations 

ACP Alternate Compliance Program 

CAA 2022 Consolidated Appropriations Act 

of 2022 

CGAA 2018 Frank LoBiondo Coast Guard 

Authorization Act of 2018 

CG–CVC Office of Commercial Vessel 

Compliance 

COI Certificate of Inspection 

DAPI Drug and Alcohol Program Inspector 

DHS Department of Homeland Security 

FR Federal Register 

FRFA Final Regulatory Flexibility Analysis 

FTE Full-Time Equivalent 

ICR Information Collection Request 

IRFA Initial Regulatory Flexibility Analysis 

MISLE Marine Information for Safety and 

Law Enforcement 

MTSA Maritime Transportation Security 

Act 

NAICS North American Industry 

Classification System 

NPRM Notice of proposed rulemaking 

OMB Office of Management and Budget 

RFA Regulatory Flexibility Act 

SBA Small Business Administration 

§ Section 

SIP Streamlined Inspection Program 

SSM Sector Staffing Model 

TSMS Towing Safety Management System 

TVNCOE Towing Vessel National Center of 

Expertise 

U.S.C. United States Code 

II. Basis and Purpose 

In this section, the Coast Guard 

identifies the problem we intend to 

address, the well-established statutory 

authority that enables us to issue this 

final rule, and the recent legislation that 

provides additional authority for this 

rulemaking. 

A. The Problem We Seek To Address 

On June 20, 2016, the Coast Guard 

published a final rule titled ‘‘Inspection 

of Towing Vessels’’ (81 FR 40003), in 

which we stated our plan to begin a 

rulemaking for annual inspection fees 

for towing vessels. The updated annual 

inspection fees in this final rule reflect 

the program’s costs for two options for 

towing vessels to document compliance 

for obtaining a Certificate of Inspection 

(COI): 1 the Coast Guard option and the 

Towing Safety Management System 

(TSMS) option.2 As indicated in the 

2016 final rule, the existing default fee 

of $1,030 was identified as the annual 

inspection fee for towing vessels subject 

to 46 CFR subchapter M until new rates 

were established. The existing fee of 

$1,030 is found in 46 CFR 2.10–101 and 

applies to any inspected vessel not 

listed in table 2.10–101.3

In addition to towing vessels subject 

to subchapter M that are required to 

obtain COIs, towing vessels that qualify 

as seagoing motor vessels (300 gross 

tons or more) are required to have COIs 

under regulations in 46 CFR, chapter I, 


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4See 46 CFR 2.01–7 and 90.05–1. Under 46 

U.S.C. 3301, seagoing motor vessels are subject to 

inspection. Towing vessels are motor vessels 

(vessels propelled by machinery other than steam), 

and they fall within the definition of ‘‘seagoing 

motor vessel’’ if they are at least 300 gross tons and 

make voyages beyond the Boundary Line. See 

definitions in 46 U.S.C. 2101. 

5See 60 FR 13550, March 13, 1995; 46 CFR 2.10– 

101. 

6Public Law 115–282, 132 Stat. 4192. 

7Public Law 117–103, 136 Stat. 325. 

8See Sec. 231 of CAA 2020, Public Law 117–103, 

136 Stat. 325. 

9 60 FR 13550. 

10See 81 FR at 40005. 

11Under 46 CFR 2.01–6(b), foreign vessels from 

countries which are nonsignatory to the 

International Convention for the Safety of Life at 

Sea, 1974, are issued a COI, if the inspector 

approves the vessel and its equipment as described 

in § 2.01–5. We have records of COIs issued to 

foreign vessels in our Marine Information for Safety 

and Law Enforcement (MISLE) database, but no 

records of a COI issued to a foreign towing vessel. 

subchapter I for cargo and 

miscellaneous vessels.4 The Coast 

Guard set the annual inspection fee for 

these towing vessels at $2,915 in 1995, 

and this figure has never been updated.5

On January 11, 2022, we published a 

notice of proposed rulemaking (NPRM) 

entitled ‘‘User Fees for Inspected 

Towing Vessels’’ (87 FR 1378). Having 

considered comments submitted in 

response to that NPRM, we are issuing 

this final rule to update inspection fees 

for subchapter M and I towing vessels. 

B. Legal Authority To Address This 

Problem 

The Coast Guard is issuing this final 

rule based on authority in Section 2110 

of Title 46 of the United States Code 

(U.S.C.) (46 U.S.C. 2110), which has 

been delegated to the Commandant 

under Department of Homeland 

Security (DHS) Delegation No. 

00170.1(II)(92), Revision 01.3. These 

provisions direct the Coast Guard to 

establish a fee or charge for inspections 

and related services described in 46 

U.S.C. 2110(a)(1). Under the law, the 

Coast Guard is required to establish a 

fee for its inspection services that is fair 

and based on costs to the Government, 

the value to the recipient, and public 

interest. The law also requires that we 

review the costs of inspecting towing 

vessels for the Government using the 

Coast Guard option or a third-party 

option, and revise such fees if there is 

a difference. 

C. Recent Legislation 

On December 4, 2018, Congress 

enacted the Frank LoBiondo Coast 

Guard Authorization Act of 2018 (CGAA 

2018).6 Section 815 of the CGAA 2018 

directs the Coast Guard to review and 

revise the fees for towing vessel 

inspections. First, the Coast Guard must 

compare the costs to the Government for 

towing vessel inspections performed by 

the Coast Guard and towing vessel 

inspections performed by a third party 

to determine if the costs are different. 

The Coast Guard interprets ‘‘costs to the 

Government’’ in Section 815(a) to mean 

the cost to the Coast Guard for providing 

inspection and related services to 

determine whether a vessel meets 

requirements to maintain its COI. If 

there is a difference in costs, Section 

815 of the CGAA 2018 directs us to 

revise the fee we assess for such 

inspections to conform to 31 U.S.C. 

9701, and to base the fee on the cost to 

the Government. We have conducted 

that comparison and determined that 

there is a difference in costs to the 

Government between the inspection 

options for towing vessels that involve 

a third party and for those that do not 

and will revise the fees for these 

inspections as a result. 

On March 15, 2022, Congress enacted 

the Consolidated Appropriations Act of 

2022 (CAA 2022).7 Section 231 of the 

CAA 2022 prohibits the Coast Guard 

from charging inspection user fees for 

towing vessels using the TSMS option 

until the requirements of Section 815 of 

the CGAA 2018 are met.8 Thus, the 

intent of this final rule is to meet those 

requirements of Section 815 of the 

CGAA 2018 by updating its inspection 

fees for its Alternate Compliance 

Program (ACP), Streamlined Inspection 

Program (SIP), and the TSMS option. 

Until the Coast Guard implements this 

final rule and updates to the inspection 

fees become effective, our agency will 

not charge TSMS option towing vessels 

an inspection user fee. 

III. Background 

A. Origins of Annual Vessel Inspection 

Fees 

The provisions of 46 U.S.C. 2110 

require the establishment and collection 

of user fees for Coast Guard services 

provided under Subtitle II of Title 46, 

United States Code. On March 13, 1995, 

the Coast Guard published the final rule 

on ‘‘Direct User Fees for Inspection or 

Examination of U.S. and Foreign 

Commercial Vessels.’’ 9 The fees in that 

final rule were intended to recover the 

costs associated with providing Coast 

Guard vessel inspection services 

directly or through an alternative 

reinspection program, although the 

alternative reinspection program only 

applied to certain offshore supply 

vessels. The final rule established user 

fees for services related to commercial 

vessel inspection including annual fees 

for seagoing towing vessels. 

On June 20, 2016, the Coast Guard 

published the ‘‘Inspection of Towing 

Vessels’’ final rule, in which we 

indicated that, in a subsequent 

rulemaking, we would establish specific 

fees that would reflect program costs 

associated with the TSMS and Coast 

Guard inspection options for obtaining 

COIs. We stated that until those specific 

fees were established, the annual 

inspection fee for towing vessels subject 

to 46 CFR subchapter M would be the 

existing fee of $1,030 in 46 CFR 2.10– 

101 for any inspected vessel not listed 

in table 2.10–101.10

B. Current Fees for Towing Vessels 

Subject to 46 CFR Subchapters I and M 

With the noted exception of towing 

vessels using the TSMS-option, the 

Coast Guard currently charges an annual 

vessel inspection fee for U.S. and 

foreign vessels requiring a COI, 

following the fee schedule set in 46 CFR 

2.10–101.11 The current fee for seagoing 

towing vessels inspected under 

subchapter I is $2,915 for all inspection 

options—the Coast Guard, the ACP, and 

the SIP. The current fee for towing 

vessels inspected under all inspection 

options under 46 CFR subchapter M is 

$1,030, which is the fee for ‘‘[a]ny vessel 

not listed in this table.’’ As stated above, 

TSMS fees are not currently being 

charged, and will not be charged until 

this final rule is published. 

IV. Discussion of Comments and 

Changes 

In response to the NPRM we 

published January 11, 2022, we received 

13 written submissions (plus one 

duplicate) to our docket. In total, there 

are 35 comments in response to the 

proposed rule. These written 

submissions are available in the public 

docket for this rulemaking, where 

indicated under ADDRESSES or use the 

direct link https://www.regulations.gov/ 

docket/USCG-2018-0538. The Coast 

Guard appreciates the comments from 

the public, as these insights continue to 

inform Coast Guard actions and 

programs. Below we summarize the 

comments and our responses. 

The Coast Guard received a number of 

comments about the proposed fees. 

Some commenters stated that the 

proposed fees provided no incentive for 

choosing the TSMS option, and that the 

TSMS user fee was unfair due to the 

third-party costs associated with that 

option. Some commenters said that the 

TSMS option offers increased safety, 

which actually reduces the Coast Guard 

burden, so this should lead to lower 

fees. Several commenters requested that 

the Coast Guard option user fee remain 

$1,030. One commenter recommended a 


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12Coast Guard offices and units involved in the 

Cost Study development include the—Office of 

Commercial Vessel Compliance (CG–CVC), Office of 

Standards Evaluation and Development (CG–REG), 

Office of Resource Management (CG–83) (formerly 

CG–DCO–83), Office of Shore Forces (CG–741), 

Towing Vessel National Center of Expertise 

(TVNCOE), Finance Center (FINCEN) and Marine 

Safety Unit Paducah, Kentucky. 

reduction of the user fees for both TSMS 

option vessels and Coast Guard option 

vessels. 

After considering these comments, we 

retain the user fees proposed in the 

NPRM for this final rule. Our reasons 

are as follows. The law requires the 

Coast Guard to establish a fee for its 

inspection services and the fees must be 

fair and based on the costs to the 

Government, value to the recipient, and 

public interest. See 31 U.S.C. 9701. In 

addition, Section 815 of the CGAA 2018 

requires the Coast Guard to review the 

costs to the Government of Coast Guard 

and third-party inspections for towing 

vessels. If there is a difference in the 

costs to the Government, we must revise 

the annual inspection fees set by the 

Coast Guard for towing vessels. To 

revise the fees, we must comply with 

the same fee-establishing requirements 

in 31 U.S.C. 9701. The user fee amounts 

we set are based on the direct and 

indirect costs for the Coast Guard to 

perform specific vessel inspection 

activities. The ‘‘Cost Study to Determine 

User Fees for Inspected Towing 

Vessels,’’ available in the docket where 

indicated under the ADDRESSES section 

of this preamble, explains in detail how 

we determine direct and indirect costs 

and calculate user fees. In developing 

the Cost Study, Coast Guard program, 

budget, and field offices 12 specified the 

cost model elements, provided the data 

sources, and validated the methodology 

used to determine towing vessel user 

fees, as well as the study results. 

Furthermore, the user fees vary 

because the frequency of inspections 

and the times for inspection activities 

vary based on vessel class and 

inspection option. Selecting the TSMS 

or Coast Guard inspection option is a 

business decision by the vessel owner or 

operator. 

Currently, owners and operators of 

about 70 percent of subchapter M 

inspected towing vessels with a COI 

have chosen the TSMS option while 30 

percent of COIs for subchapter M 

inspected towing vessels are issued 

under the traditional Coast Guard 

option. This number has not 

substantially changed since the 

implementation of the 2016 ‘‘Inspection 

of Towing Vessels’’ final rule and the 

first COIs were issued in 2017. The user 

fees for the TSMS option account for the 

cost to the Government to provide 

inspections services for this vessel class 

and inspection option. A vessel owner 

or operator who selects the TSMS 

option is making a business decision 

that should account for the cost to 

contract with a third-party organization. 

For these reasons, there are no changes 

to the final rule in response to the 

comments on the proposed fees. 

Several commenters stated that the 

Cost Study is flawed. We received 

comments indicating that the fees are 

duplicative, excessive, do not accurately 

reflect the Coast Guard workload, and 

do not represent the commenters’ 

observed experience. 

The Coast Guard disagrees. The fees 

we proposed for the Coast Guard option 

and TSMS option accurately estimate 

the cost to the Government to provide 

our inspection services. The Cost Study 

explains how we determine direct and 

indirect costs. We derive the user fee 

from the cost to the Coast Guard to 

perform a specific set of vessel 

inspection activities. The time it takes to 

perform any specific inspection activity 

includes more than just the observed 

time or ‘‘boots on deck’’ time on a 

vessel. A typical inspection involves 

pre-inspection activities (for example, 

identifying vessel type, safety 

requirements, and vessel history), inperson assessment activities (for 

example, verifying the integrity of 

vessel’s hull and presence of 

appropriate safety equipment, and 

assessing proper operation of electrical 

and mechanical equipment), and followup activities (for example, reporting 

identified deficiencies, updating vessel 

data into the Coast Guard’s Coast 

Guard’s Marine Information for Safety 

and Law Enforcement (MISLE) system, 

and verifying deficiency rectification). 

The Coast Guard periodically 

validates the duration of these vessel 

inspection activity times. Concurrent 

inspection activities are allocated less 

time than the primary inspection 

activities because concurrent inspection 

activities are conducted together. 

Additionally, unlike primary inspection 

activities, concurrent inspection 

activities are not allocated travel time 

credit. Because the time for primary 

inspection activities is recorded and 

allocated differently from concurrent 

inspection activities, such concurrent 

inspection charges are not redundant. 

For these reasons, the Coast Guard is 

maintaining its reliance on the Cost 

Study in this area. As such, there is no 

change to this final rule based on these 

comments. 

One commenter stated that the Coast 

Guard has not yet determined the time 

and resources necessary for the COI 

renewal process. 

The Coast Guard disagrees. As stated 

above, the Cost Study explains how we 

determine direct and indirect costs. The 

fees we proposed for the Coast Guard 

option and TSMS option accurately 

estimate the cost to the Government to 

provide our inspection services. For this 

reason, we have made no changes from 

the proposed rule in response to this 

comment. 

Several commenters stated that the 

proposed fees impose a financial 

hardship or burden on small business 

due to the state of the economy, and that 

the Coast Guard should defer imposition 

of fees until we study the costs further. 

In accordance with 46 U.S.C. 2110, 

the Coast Guard is required to establish 

a fee for its inspection services that is 

fair and based on the costs to the 

Government, value to the recipient, and 

public interest. The proposed user fees 

were developed in accordance with law, 

and further delay or study is 

unnecessary. For this reason, we have 

made no changes from the proposed 

rule in response to these comments. 

One commenter stated that in not 

applying the inflation factor, the 

proposed fees result in a significant 

increase in annual Government 

revenues from user fees. The commenter 

said that for the TSMS option, the 

current user fee of $1,030 should be 

increased by the inflation factor of 1.58, 

and then divided by 5 to account for the 

5-year period between inspections and 

adjusted for the minimal periods of 

oversight. 

The Coast Guard disagrees. We did 

not adjust the user fee for towing vessels 

by an inflation factor since the previous 

user fee was not specific to subchapter 

M towing vessels and did not reflect the 

costs to the Coast Guard for performing 

inspections on towing vessels. The user 

fee of $1,030 in Table 2.10–101 is for 

inspections on ‘‘[a]ny inspected vessel 

not listed in this table.’’ The TSMS 

option user fee in this rule is based on 

the costs to the Government to provide 

inspection services. For these reasons, 

we have made no changes from the 

proposed rule in response to this 

comment. 

One commenter stated that an 

inspection visit resulted in lost revenue 

from a potential barge move. 

Lost revenue due to inspections is not 

within the scope of this rulemaking. In 

2004, Congress determined that towing 

vessels are to be subject to inspection, 

resulting in the 2016 ‘‘Inspection of 

Towing Vessels’’ final rule. The costs, 

including lost revenue, were considered 

in that rulemaking and its 

accompanying regulatory analysis. For 


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13Under 46 U.S.C. 103 and 33 U.S.C. 151(b), 

boundary lines are used for dividing inland waters 

of the United States from the high seas to delineate 

the application of certain U.S. statutes. For a list of 

boundary lines and the statutes those lines are used 

to delineate, see 46 CFR part 7, which lists 

boundary lines for the Atlantic Coast, Gulf Coast, 

Pacific Coast, and the states of Alaska and Hawaii. 

this reason, we have made no changes 

from the proposed rule in response to 

this comment. 

A commenter stated that this rule fails 

to acknowledge those towing vessels on 

any water that are more than 15 gross 

tons and carrying cargo for hire. The 

commenter said those vessels would 

also fall under subchapter I and they 

should be addressed in this rulemaking. 

The Coast Guard disagrees. Every 

request for inspection submitted is 

reviewed on a case-by-case basis. Per 46 

CFR 2.01–7, Table 2.01–7(a), a vessel 

inspected under subchapter I includes 

‘‘[a]ll vessels >15 gross tons carrying 

freight-for-hire[.]’’ However, any vessel 

that is (1) more than 15 gross tons but 

less than 300 gross tons and (2) towing 

and also carrying cargo for hire on board 

the vessel separate from the tow, would 

be considered for a multi-service vessel 

certification. A vessel certificated for 

more than one service is already 

covered under 46 CFR 2.10–101. The 

owner or operator of the vessel must pay 

only the higher of the two applicable 

fees. For this reason, we have made no 

changes from the proposed rule in 

response to this comment. 

Another commenter stated that audits 

by Drug and Alcohol Program Inspectors 

(DAPI) and Maritime Transportation 

Security Act (MTSA) verifications 

should be removed from the Cost Study 

because they are not derived from the 

requirements of subchapter M. 

The Coast Guard disagrees. The Coast 

Guard included DAPI audits (46 CFR 

16.401) and MTSA verifications (46 CFR 

140.660) in the Cost Study because 

compliance with these requirements 

must be met prior to the Coast Guard 

issuing a COI, regardless of the vessel 

inspection option chosen. For this 

reason, we have made no changes from 

the proposed rule in response to this 

comment. 

One commenter stated that two 

categories of indirect costs are not 

appropriate in an assessment of agency 

costs to provide towing vessel 

inspection services: (1) policy and 

oversight costs, and (2) facility overhead 

and support costs. The commenter 

further stated that the operating and 

personnel costs of billets for staff at the 

Towing Vessel National Center of 

Expertise (TVNCOE) and Coast Guard 

District, Area, and Headquarters predate 

the publication and implementation of 

subchapter M. The commenter also 

stated that they were unaware of any 

new facilities or Coast Guard units that 

have been created for the purpose of 

providing towing vessel inspection 

services or, more broadly, implementing 

and enforcing subchapter M. The 

commenter recommended eliminating 

the policy and oversight costs, and 

facility overhead and support costs. 

The Coast Guard disagrees. Policy and 

oversight activities are an essential 

element to ensure consistent application 

of nationwide towing vessel inspection 

requirements. Facility overhead and 

support costs are included to fairly 

account for the cost to the Government 

to provide inspection services. 

Historically, operating and overhead 

costs have been included in vessel 

inspection user fees, as well as other 

Coast Guard user fees such as merchant 

mariner credentialing and vessel 

documentation. For these reasons, we 

have made no changes from the 

proposed rule in response to this 

comment. 

V. Discussion of the Rule 

This final rule updates existing 

annual inspection fees for both seagoing 

towing vessels (300 gross tons or more) 

and vessels subject to the towing-vessel 

regulations in 46 CFR, subchapter M 

issued in 2016. 

The annual inspection fees are located 

in 46 CFR part 2—Vessel Inspections. In 

addition to the fees in § 2.10–101, this 

part contains definitions in § 2.10–25. 

We are adding the following new 

defined terms to § 2.10–25: 

• Alternate Compliance Program 

option; 

• Annual vessel inspection fee; 

• Coast Guard option; 

• Streamlined Inspection Program 

option; 

• Towing Safety Management System 

option; and 

• Towing vessel. 

We define annual vessel inspection 

fee as the fee charged by the Coast 

Guard for providing inspection and 

related services to determine whether a 

vessel meets the requirements to 

maintain its COI. The fee charged by the 

Coast Guard reflects the cost to the 

Coast Guard. There are several existing 

options for inspection, which we define 

in revised § 2.10–25 by referencing the 

regulations that establish each option. 

For both seagoing and subchapter M 

towing vessels, there is a Coast Guard 

option in which the Coast Guard 

performs all the relevant inspection 

activity. For both types of vessels, there 

is also a third-party option, already 

established in regulation, in which a 

third party performs some of the 

relevant activity, but the Coast Guard 

still inspects the vessel and examines 

evidence of compliance provided by 

third parties. 

For seagoing towing vessels there is 

an additional option, the SIP. The SIP 

option does not involve a third party. 

Under the SIP option, a vessel is 

inspected in accordance with an 

approved Vessel Action Plan that the 

company’s SIP agent develops with 

guidance from the Coast Guard. In our 

definition of SIP, we point to subpart E 

of 46 CFR part 8, which spells out SIP 

program requirements. 

We define towing vessel as a 

commercial vessel engaged in or 

intending to engage in the service of 

pulling, pushing, or hauling alongside, 

or any combination of pulling, pushing, 

or hauling alongside. 

We are also modifying the definition 

of an existing term in § 2.10–25, Seagoing towing vessel. We are removing 

the modifier ‘‘seagoing’’ from the 

definition itself and inserting a 

description of what seagoing means. 

The inserted description is ‘‘and that 

makes voyages beyond the Boundary 

Line as defined by 46 U.S.C. 103.’’ 13

The vessel must be 300 gross tons or 

more, to distinguish seagoing towing 

vessels from towing vessels subject to 

subchapter M that travel beyond the 

Boundary Line. We also remove the 

hyphen from seagoing. 

A. Categories of Annual Fees 

For towing vessels subject to 46 CFR 

subchapter M, we added two categories 

of fees: the Coast Guard option and the 

TSMS option. For seagoing towing 

vessels subject to 46 CFR subchapter I, 

we develop three fee categories: the 

Coast Guard option, the ACP option, 

and the SIP option. This fee structure 

helps to ensure the Coast Guard is able 

to recover full costs to the Government 

and to separate annual inspection fees 

for options involving third-party 

surveys and audits of towing vessels 

using safety management systems. 

B. Amending Annual Inspection Fees 

for Seagoing Towing Vessels Subject to 

46 CFR Subchapter I 

We will be charging one of three 

annual fees for seagoing towing vessels 

that are inspected under subchapter I: 

• $2,747 for those using the Coast 

Guard option; 

• $1,850 for those using the ACP 

option; and 

• $2,260 for those using the SIP 

option. 

The previous annual fee for seagoing 

towing vessels that are inspected under 

subchapter I was $2,915. 

For a detailed discussion of how these 

fees were derived, see Methodology for 


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14The Cost Study is the same one referenced in 

the NPRM and has not been changed. 

15Activity-based costing is a method for 

determining the cost of a service based on the cost 

of each individual element of that service. 

16Shore Forces units are Coast Guard sector 

commands and their subunits or field units. See the 

Coast Guard Strategic Cost Manual, COMDTINST 

M7000.4 (February 2005), which is available in the 

docket. 

17 Indirect Costs are costs such as facility and 

overhead costs as well as IT costs, since these costs 

are fixed regardless of inspection type, the costs 

were divided by the vessel population as of the Cost 

Study. 

18 Vessel population data came from MISLE as of 

2023. See the Affected Population section for more 

details. 

19The NPRM for this rule was published prior to 

the CAA 2022, thus the NPRM refers to the 

‘‘Current Fee.’’ The ‘‘Current Fee’’ of the NPRM is 

now labeled as the ‘‘Pre-CAA 2022 Fee’’ to avoid 

confusion. 

Calculating Fees in section V.D of this 

preamble. 

C. Establishing Specific Annual 

Inspection Fees for Towing Vessels 

Subject to 46 CFR Subchapter M 

We will also be charging one of two 

fees for towing vessels inspected under 

subchapter M: 

• $2,184 for those using the Coast 

Guard option, and 

• $973 for those using the TSMS 

option. 

The previous annual fee applied to 

subchapter M towing vessels was 

$1,030. 

For a more detailed discussion of how 

these fees were derived, see 

Methodology for Calculating Fees in 

section V.D of this preamble. 

D. Methodology for Calculating Fees 

This section summarizes the 

methodology for calculating fees. For 

more details, see the Cost Study 14 in the 

docket where indicated under the 

ADDRESSES section of this preamble. 

To derive the costs of the various 

inspection types, we used an activitybased costing 15 approach in 

conjunction with the Sector Staffing 

Model (SSM). The SSM is an activitybased model designed to establish 

human capital requirements and 

quantify resources at Shore Forces 

units.16 The SSM measures specific 

activity and frequency to determine the 

Full-Time Equivalent (FTE) workforce 

needed to meet a particular workload. 

Data in the model is derived from Coast 

Guard enterprise databases and surveys 

conducted at the Coast Guard field unit 

level. The model also incorporates unit 

specific travel times for conducting 

missions, collateral duty workload, and 

mission required training. In Spring 

2012, the SSM was accredited in 

accordance with official Coast Guard 

policy and currently serves as the 

primary decision tool for managing 

sector enterprise staffing. Table 1 shows 

the cost of activities for providing COI 

services to each type of inspection. 

These costs are derived using SSM FTE 

calculations; see the Cost Study in the 

docket for the full derivation of figures. 

TABLE 1—PER VESSEL COST OF ACTIVITIES FOR PROVIDING COI SERVICES BY USER FEE SEGMENT

Subchapter M: 

Coast Guard 

Subchapter M: 

TSMS 

Subchapter I: 

Coast Guard 

Subchapter I: 

ACP 

Subchapter I: 

SIP 

Inspection Activity Costs * .......................................... $1,182 $407 $1,617 $873 $1,213 

Travel Costs ............................................................... 317 40 356 356 356 

Supervision and Administration Costs ....................... 243 84 332 179 249 

Indirect Costs 17 ......................................................... 442 442 442 442 442 

Total Annual Costs ............................................. 2,184 973 2,747 1,850 2,260 

* Due to a rounding error in the NPRM, Inspection Activity Costs were overstated by $1 for four of the inspection types. This does not impact 

the final user fees. 

The Coast Guard intends to collect 

one of five different user fees from the 

approximately 4,762 towing vessels that 

require COIs under subchapters I and 

M.18 Table 2 shows the fee charged 

before the CAA 2022 went into effect, 

the CAA 2022 fee, the final rule fee, the 

incremental fee adjustment from the 

CAA 2022 fee, and the percent change 

to the user fee from the CAA 2022 fee.19

The annual cost of services for each 

vessel class is the final rule user fee for 

that vessel class. 

TABLE 2—PRE-CAA 2022, CAA 2022 SUBCHAPTER M AND I USER FEES AND FINAL RULE USER FEE ADJUSTMENT

AMOUNTS

Fee type/user fee class Pre-CAA 

2022 fee 

CAA 

2022 fee 

Final 

Rule fee 

Incremental 

fee 

adjustment 

Percent 

change 

(%) 

Subchapter M: Coast Guard option ......................................................................... $1,030 $1,030 $2,184 $1,154 112 

Subchapter M: TSMS option ................................................................................... 1,030 0 973 973 ..............

Subchapter I: Coast Guard option ........................................................................... 2,915 2,915 2,747 ¥168 ¥6 

Subchapter I: ACP option ........................................................................................ 2,915 2,915 1,850 ¥1,065 ¥37 

Subchapter I: SIP option .......................................................................................... 2,915 2,915 2,260 ¥655 ¥22 

VI. Regulatory Analyses 

We developed this final rule after 

considering numerous statutes and 

Executive orders related to rulemaking. 

Below we summarize our analyses 

based on these statutes or Executive 

orders. 

A. Regulatory Planning and Review 

Executive Orders 12866 (Regulatory 

Planning and Review), as amended by 

Executive Order 14094 (Modernizing 

Regulatory Review) and 13563 

(Improving Regulation and Regulatory 

Review) direct agencies to assess the 

costs and benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 


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20The user fees collected for these services are 

offsetting receipts and are deposited to the 

Department of Treasury and credited to DHS 

appropriation as proprietary receipts. See 46 U.S.C. 

2110(h). 

21Transaction costs vary by inspection option. 

Towing vessels that elect to participate in the ACP 

must comply with the requirements in 46 CFR part 

8 subpart D, that includes working with an ACP 

authorized classification society. Towing vessels 

that elect to participate in the SIP must comply 

with the requirements in 46 CFR part 8 subpart E, 

that includes the development of a Company Action 

Plan and a Vessel Action Plan. 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. 

The Office of Management and Budget 

(OMB) has not designated this rule a 

significant regulatory action under 

section 3(f) of Executive Order 12866, as 

amended by Executive Order 14094. 

This rule has not been reviewed by 

OMB. A regulatory analysis follows. 

Changes From the Notice of Proposed 

Rulemaking 

This final rule’s regulatory analysis 

has made two changes from the NPRM 

we published in 2022 (87 FR 1378), but 

the user fees are not changed from the 

NPRM’s rates. First, we updated the 

populations to reflect current data from 

MISLE; the subchapter M population 

decreased while the subchapter I 

population remained relatively stable. 

Second, the baseline for TSMS fees 

under subchapter M decreased from 

$1,030 to $0. This is because the CAA 

2022 directed the Coast Guard not to 

charge user fees to TSMS vessels under 

subchapter M until it follows the steps 

in Section 815 of the CGAA 2018, and 

based on its findings reported above, 

revises its fees. This rule will revise 

those fees effective March 27, 2024. 

Baselines 

Currently, towing vessels are 

inspected under subchapter I or 

subchapter M, dependent on their size 

and area of operation. Owners and 

operators of towing vessels inspected 

under 46 CFR subchapter I pay a user 

fee of $2,915 annually. Owners and 

operators of towing vessels under 46 

CFR subchapter M that choose to be 

inspected by the Coast Guard pay a user 

fee of $1,030 annually. Owners and 

operators of towing vessels under 

subchapter M that choose the TSMS 

option do not pay a user fee because of 

the CAA 2022. However, as noted 

earlier, the subchapter M user fee is not 

specific to towing vessels; rather it is for 

all inspected vessels that do not have a 

specific user fee on Table 2.10–101. 

Prior to the CAA 2022 owners and 

operators of towing vessels under 

subchapter M that choose the TSMS 

option paid a user fee of $1,030 

annually. 

Under the current CAA 2022 baseline, 

we calculate that owners and operators 

of 43 towing vessels inspected under 

subchapter I pay $125,345 annually, and 

that owners and operators of 4,719 

towing vessels inspected under 

subchapter M pay $1,458,480 annually 

for inspection services, respectively. 

Thus, the current transfer from vessel 

owners to the Coast Guard for towing 

vessel inspection services is $1,583,825 

annually. Prior to the CAA 2022, when 

the TSMS user fee was not suspended, 

owners and operators of all subchapter 

M towing vessels (TSMS option and 

Coast Guard option) paid the $1,030 

user fee. This would have resulted in an 

annual transfer from subchapter M and 

I vessel owners and operators to the 

Coast Guard for towing vessel 

inspection services of $4,985,915. 

Owners and operators of towing vessels 

choose between several vessel 

inspection alternatives. Once selected, 

the inspection option is unlikely to 

change due to a change in user fees, 

since there are private business costs 

associated with changing inspection 

options. The Coast Guard’s COI service 

costs are fully funded through annual 

appropriations.20

This final rule establishes a user fee 

specific to towing vessels under 

subchapter M, revises the user fee 

specific to towing vessels under 

subchapter I, and establishes user fees 

for alternatives for vessel inspection that 

require fewer Coast Guard inspection 

activities or that take less time and thus 

have a lower cost to the Coast Guard. 

This updated structure for user fees will 

help to ensure the Coast Guard’s ability 

to offset costs to the Government, and to 

separate annual inspection fees for 

options involving third-party surveys 

and audits of towing vessels using safety 

management systems. From a baseline 

of the CAA 2022, this final rule results 

in an estimated $4.8 million annual 

transfer payment from owners and 

operators of towing vessels to the 

Federal Government for COI services. 

The 10-year transfers, undiscounted, are 

$49,320,822. The discounted annualized 

figure, at 7 percent, is $4,918,994. The 

discounted annualized figure, at 3 

percent, is $4,926,329. 

The Coast Guard also does the 

following in this final rule: 

(1) Modifies the definition in § 2.10– 

25 of Sea-going towing vessel. We 

remove the modifier ‘‘seagoing’’ from 

the definition and replace it with a 

description of what ‘‘seagoing’’ means. 

The updated language is ‘‘and that 

makes voyages beyond the Boundary 

Line as defined by 46 U.S.C. 103.’’ Also, 

we specify that the vessel must be 300 

gross tons or more to distinguish 

seagoing towing vessels from towing 

vessels that travel beyond the Boundary 

Line, which may be subject to 

subchapter M. This is an administrative 

change, and it would have no economic 

impact. 

(2) Amends the user fees for towing 

vessels under 46 CFR subchapter I. The 

current fee for the 43 seagoing towing 

vessels inspected under subchapter I is 

$2,915 for all inspection options (Coast 

Guard, ACP, and SIP). This final rule 

makes the fees specific to each 

inspection as shown below in table 3. 

Owners and operators of vessels have 

already chosen their inspection option 

and are unlikely to change their current 

option. This is because there are costs 

associated with switching inspection 

options and there are transactions in 

private industry and business-specific 

costs 21 beyond the inspection cost that 

make the user fee a small portion of the 

overall cost of inspections. 

TABLE 3—CURRENT AND FINAL RULE

USER FEES FOR TOWING VESSELS

UNDER 46 CFR SUBCHAPTER I 

Inspection type Current 

fee 

Revised 

fee 

Coast Guard option ............. $2,915 $2,747 

ACP option .......................... 1,850 

SIP option ............................ 2,260 

(3) Creates a specific user fee category 

for the 4,719 towing vessels subject to 

46 CFR subchapter in the table of fees 

in § 2.10–101 and updates the current 

user fees for annual inspection fees for 

towing vessels to reflect the specific 

program costs associated with the two 

subchapter M options: the TSMS option 

and the Coast Guard inspection option. 

The Coast Guard inspection option’s 

current annual fee is $1,030 for towing 

vessels subject to subchapter M. The 

existing fee of $1,030 is found in 46 CFR 

2.10–101 and applies to any inspected 

vessel not listed in table 2.10–101. 

Owners and operators of subchapter M 

vessels that choose the TSMS inspection 

option do not currently pay a user fee. 

This final rule makes the fees specific to 

each inspection type as shown below in 

table 4. Similar to owners and operators 

of subchapter I vessels, owners and 

operators of subchapter M vessels have 

already chosen their inspection option 

and are unlikely to change for the same 

reasons. 


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Federal Register / Vol. 88, No. 248 / Thursday, December 28, 2023 / Rules and Regulations 89601 

TABLE 4—CURRENT AND REVISED

USER FEES FOR TOWING VESSELS

UNDER SUBCHAPTER M 

Inspection type Current 

fee 

Revised 

fee 

Coast Guard option ............. $1,030 $2,184 

TSMS option ....................... 0 973 

(4) Defines the following new terms 

added to the table of fees in § 2.10–101: 

Annual vessel inspection fee, 

Alternative Compliance Program option, 

Coast Guard option, Streamlined 

Inspection Program option, Towing 

Safety Management System option, and 

Towing vessel. This is an administrative 

change and has no economic impact. All 

these points are described in greater 

detail in the Cost Study. 

Affected Population 

To obtain the affected population for 

this final rule, we used the MISLE 

system. MISLE is the Coast Guard’s 

vessel and marine activity database and 

contains the best and most readily 

available vessel population data. 

According to MISLE data as of 2023, the 

total affected population of this final 

rule is 4,762 inspected towing vessels. 

There are approximately 4,719 towing 

vessels that will require inspection 

under 46 CFR subchapter M and 43 

towing vessels that are inspected under 

46 CFR subchapter I. Coast Guard 

subject matter experts in the Office of 

Commercial Vessel Compliance (CG– 

CVC) estimate that the subchapter M 

population will increase by an average 

of 23 vessels per year because a number 

of subchapter M vessels began the 

inspection process to obtain a COI 

during the 4-year phase-in period but 

did not complete the process. The Coast 

Guard believes that, over time, these 

vessels will obtain new COIs; thus, the 

subchapter M population will increase. 

The subchapter I population is expected 

to remain stable because it historically 

has done so. 

Rather than a single fee category for 

all towing vessels covered by a 

subchapter, the Coast Guard is creating 

two categories for subchapter M and 

three categories for subchapter I vessels. 

For subchapter M, the inspection types 

are the Coast Guard option and the 

TSMS option. For subchapter I, the 

inspection types are the Coast Guard 

option, the ACP option, and the SIP 

option. Table 5 presents the total 

population of inspected towing vessels 

impacted by this final rule and the 

current breakdown of inspections 

within each subchapter. Table 6 

presents the projected subchapter M 

population and their projected counts of 

inspection type. We assume that the 

subchapter M towing vessel population 

will maintain their current split of 70 

percent using the TSMS option and 30 

percent using the Coast Guard option 

during the duration of the analysis. 

TABLE 5—TOTAL AFFECTED POPULATION FOR INSPECTED TOWING VESSELS

User Fee Categories Population 

46 CFR Subchapter M Coast Guard 

option 

TSMS option Total 

Population .................................................................................................................. 1,416 3,303 4,719 

% of Population 30% 70% 100% 

46 CFR Subchapter I ............................................................... Coast Guard 

option 

Vessel Inspection Alternatives Total 

Alternate 

Compliance 

Program (ACP) 

option 

Streamlined 

Inspection 

Program (SIP) 

option 

Population ................................................................................ 26 16 1 43 

% of Population ....................................................................... 61% 37% 2% 100% 

Total Population ................................................................ .............................. .............................. .............................. 4,762 

TABLE 6—PROJECTED SUBCHAPTER M POPULATION BY INSPECTION OPTION

Estimated annual subchapter M population by inspection type 

Year CG option TSMS option 

Year 1 ...................................................................................................................................................................... 1,416 3,303 

Year 2 ...................................................................................................................................................................... 1,423 3,319 

Year 3 ...................................................................................................................................................................... 1,429 3,336 

Year 4 ...................................................................................................................................................................... 1,436 3,352 

Year 5 ...................................................................................................................................................................... 1,443 3,368 

Year 6 ...................................................................................................................................................................... 1,450 3,384 

Year 7 ...................................................................................................................................................................... 1,457 3,400 

Year 8 ...................................................................................................................................................................... 1,464 3,416 

Year 9 ...................................................................................................................................................................... 1,471 3,432 

Year 10 .................................................................................................................................................................... 1,478 3,448 

Costs and Benefits 

This final rule does not impose any 

new societal costs because all the 

inspection activities are done by 

regulated entities and the Coast Guard. 

Instead, the impacts of this final rule are 

in the form of transfer payments, which 

are monetary payments from one group 

to another that do not affect the total 

resources available to society. 

This final rule does not provide any 

quantitative benefits; however, revising 


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22The incremental changes in transfers are from 

the specified baseline to the Final Rule user fee. 

23The incremental changes in transfers are from 

the specified baseline to the Final Rule user fee. 

user fees to reflect the actual cost for the 

Coast Guard to provide inspection 

services is a qualitative benefit. The 

result is a fairer distribution of costs to 

inspected towing vessels by inspection 

type. Section 2110 of Title 46 of the 

U.S.C. directs that the fee or charge be 

established in accordance with 31 

U.S.C. 9701, which specifies that each 

charge be fair and based on the costs to 

the Government; the value of the service 

or thing to the recipient, public policy, 

or interest served; and other relevant 

facts. Consistent with these objectives, 

once a fee or charge is established, 

Section 2110 allows the fee or charge to 

be adjusted to accommodate changes in 

the cost of providing a specific service 

or thing of value. This final rule aids the 

Coast Guard in compliance with those 

statutory requirements. 

Transfer Payments 

This final rule adjusts the user fees 

collected from the current entities so 

that there are now five different fees 

based on the towing vessel subchapter 

and program used for vessel 

certification. There currently are 4,762 

affected towing vessels. Table 7 shows 

the pre-CAA 2022 baseline fee, CAA 

2022 baseline fee, the final rule fee, the 

change, and the percent change to the 

user fee from the pre-CAA 2022 and 

CAA 2022 baseline fees. The annual 

cost of services for each vessel class is 

the user fee for that vessel class. 

TABLE 7—PRE-CAA 2022 BASELINE FEE, CAA 2022 BASELINE FEE, FOR 46 CFR SUBCHAPTER M AND I USER FEES

AND FINAL RULE USER FEE ADJUSTMENT AMOUNTS

Fee type/user fee class 

Pre-CAA 

2022 

baseline 

fee 

CAA 

2022 

baseline 

fee 

Final rule 

fee 

Incremental 

fee 

adjustment 

from preCAA 2022 

Percent 

change from 

pre-CAA 

2022 

Incremental 

fee adjustment 

from CAA 

2022 

Percent 

change 

from CAA 

2022 

Subchapter M: Coast Guard option ...................................... $1,030 $1,030 $2,184 $1,154 112% $1,154 112% 

Subchapter M: TSMS option ................................................. 1,030 0 973 ¥57 ¥6% 973 ....................

Subchapter I: Coast Guard option ........................................ 2,915 2,915 2,747 ¥168 ¥6% ¥168 ¥6% 

Subchapter I: ACP option ..................................................... 2,915 2,915 1,850 ¥1,065 ¥37% ¥1,065 ¥37% 

Subchapter I: SIP option ....................................................... 2,915 2,915 2,260 ¥655 ¥22% ¥655 ¥22% 

Note: Since there are no distinct categories for TSMS, SIP, or ACP in the current user fee table, all owners and operators of subchapter M vessels would normally 

pay one fee and all owners and operators of subchapter I vessels pay one fee. 

In table 8, we show the total increase 

in annual transfer payments from each 

vessel class to the Government and the 

total increase for all vessels. For 

example, owners and operators of 

subchapter M vessels that choose the 

Coast Guard option will pay an 

additional $1,154 per vessel in user fees 

to the Coast Guard for inspection 

services. Negative numbers represent a 

decrease in user fees. Transfer payments 

are monetary payments from one group 

to another that do not affect total 

resources. For this final rule, a user fee 

is a transfer payment from the vessel’s 

owner or operator to the Government to 

offset the costs to the Coast Guard for 

providing COI services. This is 

calculated by multiplying the vessel 

population by the incremental fee 

change. Because the population of 46 

CFR subchapter M vessels is projected 

to increase, table 9 shows annual 

incremental transfer payments for this 

subchapter. Totals are calculated by 

multiplying the populations in table 6 

by the appropriate fees. 

TABLE 8—FIRST YEAR ANNUAL INCREMENTAL FEE AMOUNTS 22

Fee type/user fee class Estimated 

population 

Incremental 

fee change 

from 

pre-CAA 

2022 baseline 

First year 

fee transfer 

payments 

from 

pre-CAA 2022 

baseline 

Incremental 

fee change 

from CAA 

2022 baseline 

First year fee 

transfer 

payments from 

CAA 2022 

baseline 

Subchapter M: Coast Guard option ...................................................................... 1,416 $1,154 $1,634,064 $1,154 $1,634,064 

Subchapter M: TSMS option ................................................................................. 3,303 ¥57 ¥188,271 973 3,213,819 

Subtotal .......................................................................................................... 4,719 ........................ 1,445,793 ........................ 4,847,883 

Subchapter I: Coast Guard option ........................................................................ 26 ¥168 ¥4,368 ¥168 ¥4,368 

Subchapter I: ACP option ..................................................................................... 16 ¥1,065 ¥17,040 ¥1,065 ¥17,040 

Subchapter I: SIP option ....................................................................................... 1 ¥655 ¥655 ¥655 ¥655 

Subtotal .......................................................................................................... 43 ........................ ¥22,063 ........................ ¥22,063 

Annual Total ............................................................................................ ........................ ........................ 1,423,730 ........................ 4,825,820 

TABLE 9—SUBCHAPTER M ANNUAL INCREMENTAL TRANSFER PAYMENTS 23

Year 

CG option 

Pre-CAA 

2022 baseline 

TSMS 

option 

pre-CAA 2022 

baseline 

Subchapter M 

total from 

Pre-CAA 

2022 baseline 

CG 

option CAA 

2022 

baseline 

TSMS 

option CAA 

2022 

baseline 

Subchapter M 

total 

from CAA 

2022 baseline 

Year 1 ........................................................................................ $1,634,064 ¥188,271 $1,445,793 $1,634,064 $3,213,819 $4,847,883 

Year 2 ........................................................................................ 1,642,142 ¥189,183 1,452,959 1,642,142 3,229,387 4,871,529 

Year 3 ........................................................................................ 1,649,066 ¥190,152 1,458,914 1,649,066 3,245,928 4,894,994 

Year 4 ........................................................................................ 1,657,144 ¥191,064 1,466,080 1,657,144 3,261,496 4,918,640 

Year 5 ........................................................................................ 1,665,222 ¥191,976 1,473,246 1,665,222 3,277,064 4,942,286 


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24U.S. Bureau of Economic Analysis, ‘‘Table 

1.1.4. Price Indexes for Gross Domestic Product,’’ 

https://apps.bea.gov/iTable/?reqid=19&

step=3&isuri=1&1910=x&0=-99&

1921=survey&1903=4&1904=2009&

1905=2018&1906=a&1911=0 (accessed December 1, 

2023). 

TABLE 9—SUBCHAPTER M ANNUAL INCREMENTAL TRANSFER PAYMENTS 23—Continued 

Year 

CG option 

Pre-CAA 

2022 baseline 

TSMS 

option 

pre-CAA 2022 

baseline 

Subchapter M 

total from 

Pre-CAA 

2022 baseline 

CG 

option CAA 

2022 

baseline 

TSMS 

option CAA 

2022 

baseline 

Subchapter M 

total 

from CAA 

2022 baseline 

Year 6 ........................................................................................ 1,673,300 ¥192,888 1,480,412 1,673,300 3,292,632 4,965,932 

Year 7 ........................................................................................ 1,681,378 ¥193,800 1,487,578 1,681,378 3,308,200 4,989,578 

Year 8 ........................................................................................ 1,689,456 ¥194,712 1,494,744 1,689,456 3,323,768 5,013,224 

Year 9 ........................................................................................ 1,697,534 ¥195,624 1,501,910 1,697,534 3,339,336 5,036,870 

Year 10 ...................................................................................... 1,705,612 ¥196,536 1,509,076 1,705,612 3,354,904 5,060,516 

Note: The total transfer payments for subchapter M vessels rise annually due to an estimated annual increase in the population of 23 vessels. 

The reduction in fees for owners and 

operators of vessels under 46 CFR 

subchapter I will result in a decrease in 

transfer payments in the first year from 

the subchapter I towing vessel industry 

to the Government of $22,063. Relative 

to the CAA 2022 baseline, the Coast 

Guard expects to have an increase in 

transfer payments from owners and 

operators of subchapter M towing 

vessels for the COI services of 

$4,847,883 in the first year to the 

Government. The net change in transfer 

payments is $4,825,820 in the first year. 

The 10-year transfer payments, 

undiscounted, total $49,320,822. The 

discounted annualized figure, at 7 

percent, is $4,918,994. 

Relative to the Pre-CAA 2022 

baseline, the Coast Guard expects to 

have an increase in transfer payments 

from owners and operators of 

subchapter M towing vessels for the COI 

services of $1,445,793 in the first year 

to the Government as shown in table 9. 

The sum of transfer payments for 

vessels under subchapter I and M is 

$1,423,730 in the first year from the 

subchapter I towing vessel industry to 

the Government since subchapter I user 

fees are decreasing. The total 10-year 

change in transfer payments, 

undiscounted, is $14,550,082. The 

discounted annualized figure, at 7 

percent, is $1,451,108. Table 10 

summarizes the total 10-year change in 

transfer payments from the towing 

vessel industry to the Government. 

TABLE 10—DISCOUNTED TRANSFER PAYMENTS FROM TOWING VESSEL OPERATORS TO THE GOVERNMENT

Pre-CAA 2022 baseline CAA 2022 baseline 

Year Undiscounted 

Discounted 

Undiscounted 

Discounted 

7% 3% 7% 3% 

1 ................................................................................................ $1,423,730 $1,330,589 $1,382,262 $4,825,820 $4,510,112 $4,685,262 

2 ................................................................................................ 1,430,896 1,249,800 1348,757 4,849,466 4,235,711 4,571,087 

3 ................................................................................................ 1,436,851 1,172,898 1,314,922 4,872,931 3,977,763 4,459,422 

4 ................................................................................................ 1,444,017 1,101,634 1,282,990 4,896,577 3,735,575 4,350,545 

5 ................................................................................................ 1,451,183 1,034,673 1,251,803 4,920,223 3,508,051 4,244,228 

6 ................................................................................................ 1,458,349 971,760 1,221,344 4,943,869 3,294,309 4,140,412 

7 ................................................................................................ 1,465,515 912,649 1,191,598 4,967,515 3,093,519 4,039,044 

8 ................................................................................................ 1,472,681 857,114 1,162,548 4,991,161 2,904,901 3,940,069 

9 ................................................................................................ 1,479,847 804,939 1,134,180 5,014,807 2,727,723 3,843,432 

10 .............................................................................................. 1,487,013 755,922 1,106,477 5,038,453 2,561,294 3,749,082 

Total * ................................................................................. 14,550,082 10,191,977 12,396,882 49,320,822 34,548,958 42,022,583 

Annualized ................................................................................. ........................ 1,451,108 1,453,293 ........................ 4,918,994 4,926,329 

Note: Totals may not sum due to rounding. 

Regulatory Alternatives 

Alternatives considered include 

adjusting our current user fees for 

inflation, updating only the Coast Guard 

option user fees, or continuing with the 

current user fees. Each of these options 

will be considered in the following 

discussion. 

Under the first alternative, Coast 

Guard considered adjusting the 1995 

user fees for inflation from 1995 dollars 

to 2022 dollars. To adjust for inflation, 

we use an inflation factor from the 

annual gross domestic product deflator 

data.24 We calculate the inflation factor 

of 1.76 by dividing the annual 2022 

index number (117.996) by the annual 

1995 index number (66.993). We then 

multiply the current fees for 46 CFR 

subchapters I and M by the inflation 

factor and round it to the nearest dollar. 

If we simply adjusted the user fees for 

inflation, the annual fees charged under 

subchapters I and M would increase 76 

percent, by $2,215 and $783, 

respectively. These fees, when 

multiplied by the number of annual COI 

renewals, would yield a total annual 

revenue of approximately $8.8 million 

and an increase in transfer payments of 

$3.8 million. We rejected this 

alternative because the annual revenue 

collected under this methodology would 

not reflect the full cost to the Coast 

Guard of providing the COI-related 

services. Table 11 shows the inflation 

adjusted user fees for subchapter I and 

M vessels. 


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25Per the CAA 2022, towing vessels using the 

TSMS option would continue to pay no annual 

inspection user fee. 26 5 U.S.C. 604(a)(1) through (6). 

TABLE 11—COMPARISON OF USER FEES IN 1995 DOLLARS AND 2022 DOLLARS

[Alternative 1] * 

Fee category 1995 $ 

fee 

Inflation 

factor 

2022 

dollars Population Incremental fee adjustment 

Annual fee 

transfer 

payments 

Annual 

revenue 

collected 

from user fees 

Subchapter I vessels ............................................................. $2,915 1.76 $5,130 43 $2,215 $95,245 $220,590 

Subchapter M vessels ........................................................... 1,030 1.76 1,813 4,719 783 3,694,977 8,555,547 

Total ............................................................................... ................ .................... ................ .................... ........................ 3,790,222 8,776,137 

Note: All dollar figures rounded to the closest whole dollar. 

In the second alternative, we 

considered updating only the Coast 

Guard option user fees. We rejected this 

alternative because it would not comply 

with Section 815 of the CGAA 2018. 

Section 815 directs the Coast Guard to 

review and, based on our findings, 

revise the fee for towing vessel 

inspections. First, the Coast Guard must 

compare the costs to the Government of 

towing vessel inspections performed by 

the Coast Guard and towing vessel 

inspections performed by a third party, 

to determine if they are different. We 

have conducted that comparison and 

determined that there is a difference in 

costs to the Government between the 

inspection options for towing vessels 

that involve a third party and those that 

do not. If there is a difference in costs, 

Section 815 of the CGAA 2018 directs 

us to revise the fees we assess for towing 

vessel inspections to conform to 31 

U.S.C. 9701 and to base the fee on the 

cost to the Government. 

In our third alternative, we 

considered maintaining the current user 

fee 25 without an adjustment. We 

rejected this alternative because the 

annual revenue collected under this 

methodology would not cover the full 

cost to the Coast Guard of providing the 

COI-related services. 

B. Small Entities 

Under the Regulatory Flexibility Act 

(RFA), 5 U.S.C. 601–612, we have 

considered the impact of this rule on 

small entities. The term ‘‘small entities’’ 

comprises small businesses, not-forprofit organizations that are 

independently owned and operated and 

are not dominant in their fields, and 

governmental jurisdictions with 

populations of less than 50,000. 

A Final Regulatory Flexibility 

Analysis (FRFA) discussing the impact 

of this rule on small entities follows. An 

FRFA addresses the following: 

(1) A statement of the need for, and 

objectives of, the rule; 

(2) A statement of the significant 

issues raised by the public comments in 

response to the Initial Regulatory 

Flexibility Analysis (IRFA), a statement 

of the assessment of the agency of such 

issues, and a statement of any changes 

made in the proposed rule as a result of 

such comments; 

(3) The response of the agency to any 

comments filed by the Chief Counsel for 

Advocacy of the Small Business 

Administration (SBA) in response to the 

proposed rule, and a detailed statement 

of any change made to the proposed rule 

in the final rule as a result of the 

comments; 

(4) A description of and an estimate 

of the number of small entities to which 

the rule will apply or an explanation of 

why no such estimate is available; 

(5) A description of the projected 

reporting, recordkeeping, and other 

compliance requirements of the rule, 

including an estimate of the classes of 

small entities which will be subject to 

the requirement and the type of 

professional skills necessary for 

preparation of the report or record; and 

(6) A description of the steps the 

agency has taken to minimize the 

significant economic impact on small 

entities consistent with the stated 

objectives of applicable statutes, 

including a statement of the factual, 

policy, and legal reasons for selecting 

the alternative adopted in the final rule 

and why each of the other significant 

alternatives to the rule considered by 

the agency which affect the impact on 

small entities was rejected.26

Below is a discussion of the FRFA 

analysis for each of these six elements. 

(1) A statement of the need for, and 

objectives of, the rule. 

The Coast Guard is updating the user 

fees for inspected towing vessels 

because after reviewing the costs to the 

Government of inspections under the 

Coast Guard option or options using a 

third party, the Coast Guard has 

determined that updates are necessary 

to ensure that fees for all options are fair 

and based on costs to the Government. 

User fees for towing vessels inspected 

under 46 CFR subchapter I have not 

been updated since 1995. The changes 

to the fees are also consistent with the 

2016 ‘‘Inspection of Towing Vessels’’ 

final rule, in which we stated that we 

planned to issue a separate rulemaking 

for annual inspection fees for towing 

vessels that would reflect the specific 

program costs associated with the two 

46 CFR subchapter M options—the 

TSMS option and the Coast Guard 

inspection option. 

The objective of this final rule is to 

comply with the law, which requires the 

Coast Guard to establish a fee or charge 

for inspections and related services 

described in 46 U.S.C. 2110(a)(1). Under 

this law, the Coast Guard is required to 

establish a fee for its inspection services 

that is fair and based on costs to the 

Government, the value to the recipient, 

and public interest. 

(2) A statement of the significant 

issues raised by the public comments in 

response to the IRFA, a statement of the 

assessment of the agency of such issues, 

and a statement of any changes made in 

the proposed rule as a result of such 

comments. 

This regulatory action received no 

comments directly related to the IRFA 

analysis. However, we received several 

comments regarding financial hardship 

due to the fee increase. The Coast 

Guard, in accordance with 46 U.S.C. 

2110, is required to establish a fee for 

its inspection services that is fair and 

based on the costs to the Government, 

value to the recipient, and public 

interest. The user fees were developed 

in accordance with law. Each entity 

chooses its inspection option and 

corresponding fee according to its 

business needs. For a review of all the 

public comments received on the 

rulemaking, see section IV., Discussion 

of Public Comments. 

(3) The response of the agency to any 

comments filed by the Chief Counsel for 

Advocacy of the SBA in response to the 

proposed rule, and a detailed statement 

of any change made to the proposed 

rule in the final rule as a result of the 

comments. 


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27https://www.cortera.com/, https://

www.manta.com/, and https://www.reference

usagov.com (accessed July 10, 2023). 

28We used https://www.guidestar.org to evaluate 

nonprofits (accessed July 10, 2023). 

29https://www.sba.gov/document/support-tablesize-standards (accessed July 10, 2023). 

30A statistically valid random sample size of 292 

businesses would be required to achieve a 95- 

percent confidence level out of the 1,222 unique 

towing vessel companies. In this analysis, the Coast 

Guard oversampled to analyze 385 businesses to 

ensure enough data and information was available 

on the businesses to meet the sampling 

requirements. 

31The incremental change in subchapter M Coast 

Guard option user fees is $1,154, while the 

incremental change in subchapter M TSMS option 

user fee is $973. Thus, the average impact of $2,300 

was found by taking the weighted average of their 

inspection options by the fleet size. ($1,154 × 98%) 

+ ($973 × 2%) = $1,150. $1,150 × 2 = $2,300. 

This regulatory action received no 

comments from the Chief Counsel for 

the Advocacy of the SBA. 

(4) A description of and an estimate

of the number of small entities to which 

the rule will apply or an explanation of 

why no such estimate is available. 

This final rule will affect the owners 

and operators of certain towing vessels 

under 46 CFR subchapters I and M. We 

retrieved this towing vessel population 

from the Coast Guard’s MISLE system. 

From this database, we identified 4,762 

vessels affected by this final rule—4,719 

subchapter M towing vessels and 43 

subchapter I towing vessels (see table 5). 

There are 1,223 unique companies that 

own or operate these vessels. Eight 

companies own vessels under both 

subchapters I and M. One company 

owns only subchapter I vessels. 

We used available information on 

operator names and addresses to 

research public and proprietary 

databases for entity type (subsidiary or 

parent company), primary line of 

business, employee size, revenue, and 

other information.27 We found vessels 

owned by 21 government entities and 4 

nonprofit entities. The remaining 1,211 

vessels are owned by business entities. 

For governmental jurisdictions, we 

determined whether the jurisdiction had 

populations of less than 50,000 as per 

the criteria in the RFA. For nonprofits, 

we evaluated whether the nonprofit was 

independently owned and operated and 

if it was not dominant in its field.28 For 

the business entities, we matched their 

information with the SBA’s latest Table 

of Small Business Size Standards to 

determine if a business entity is small 

in its primary line of business as 

classified in the North American 

Industry Classification System 

(NAICS).29

We broke the population down into 

46 CFR subchapters I and M. For 

subchapter M, we used a random 

sample from the unique towing vessel 

companies to reach the 95-percent 

confidence level. Using Cochran’s 

Formula, the Coast Guard chose a 

statistically valid random sample of 385 

entities that own and operate towing 

vessels.30

There are a total of 97 NAICS-coded 

industries in this final rule’s sample 

affected population. Table 12 displays 

the 10 industries that appear most 

frequently in the affected population of 

owners or operators of towing vessels in 

subchapters I and M. 

TABLE 12—MOST COMMON NAICS CODES

NAICS 

code Description Small entity definition 

Count of towing 

vessel owners or 

operators 

Percent 

of total * 

488330 ..... Navigational Services to Shipping ................................................. <$47,000,000 ............................. 45 11

238910 ..... Site Preparation Contractors ......................................................... <$19,000,000 ............................. 33 8

441222 ..... Boat Dealers .................................................................................. <$40,000,000 ............................. 29 7

488410 ..... Motor Vehicle Towing .................................................................... <$9,000,000 ............................... 18 5

236115 ..... New Single-family Housing Construction (Except For-Sale Builders).<$45,000,000 ............................. 16 4

336611 ..... Ship Building and Repairing .......................................................... <1,300 Employees ..................... 9 2

237990 ..... Other Heavy and Civil Engineering Construction ......................... <$45,000,000 ............................. 8 2 

713930 ..... Marinas .......................................................................................... <$11,000,000 ............................. 8 2

483211 ..... Inland Water Freight Transportation ............................................. <1,050 Employees ..................... 72

551111 ..... Offices of Bank Holding Companies ............................................. <$38,500,000 ............................. 6 2

Note: Total does not sum to 100 percent, since these percentages reflect only the top 10 most common NAICS codes of the sample. The remaining 55 percent of NAICS codes were not within the 10 most commonly occurring. 

For subchapter M, the Coast Guard 

chose a sample of 385 businesses that 

own and operate the towing vessels. Of 

the 385 businesses, 33 exceeded the 

SBA small business size standards, 271 

companies were considered to be small 

businesses by the SBA size standards, 

and 81 companies had no information 

available. Consistent with DHS’s 

practices, entities with no information 

available are considered small entities. 

Thus, there are 352 businesses in our 

sample that we consider to be small 

entities. Based on our random sample, 

91.4 percent of subchapter M entities 

are considered small and therefore 

when applied to the population of 

unique towing vessel companies, 1,118 

subchapter M entities are considered 

small. 

For subchapter I, we searched all nine 

unique towing vessel companies in the 

available databases. All had available 

revenue and employee data. Of these 

nine unique towing vessel companies, 

eight exceeded the SBA small business 

size standards and one was considered 

a small entity by the SBA size 

standards. 

For this analysis, we considered the 

annual weighted average transfer from 

industry to the Coast Guard by 

subchapter. For subchapter M vessels, 

we found the average fleet size for small 

entities is two vessels and multiplied it 

by the weighted average of incremental 

changes in user fees. According to our 

analysis of small subchapter M vessels, 

98 percent of entities choose the Coast 

Guard option for their inspection option 

and 2 percent choose the TSMS option. 

Thus, we multiplied the rates for 

entities choosing their inspection option 

by the incremental change in user fees 

compared to the CAA 2022 baseline and 

the average fleet size for small 

subchapter M entities, which yielded an 

average increase in impact of $1,150 per 

subchapter M vessel and $2,300 per 

small subchapter M entity due to the 

incremental change in subchapter M 

fees.31 We repeated this process for 

subchapter I entities. We found that 

each small entity had an average fleet 

size of two vessels and multiplied it by 

the weighted average of incremental 

changes in user fees. According to our 


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analysis of small subchapter I vessels, 

all entities chose the ACP inspection 

option. This final rule will save 

subchapter I entities $2,130. Tables 13 

and 14 show the impact on revenues for 

small entities that we had revenue data 

for under each subchapter. 

TABLE 13—ESTIMATED ANNUAL REVENUE IMPACT FOR SMALL ENTITIES UNDER 46 CFR SUBCHAPTER M 

Revenue impact range 

(%) 

Number of entities Percent of entities 

0 < 1 ........................................................................................................................................................................ 170 80.6 

1 < 3 ........................................................................................................................................................................ 31 14.7 

3 < 5 ........................................................................................................................................................................ 7 3.3 

5 < 10 ...................................................................................................................................................................... 3 1.4 

Above 10 .................................................................................................................................................................. 0 0 

Total .................................................................................................................................................................. 211 100 

TABLE 14—ESTIMATED ANNUAL REVENUE IMPACT FOR SMALL ENTITIES UNDER 46 CFR SUBCHAPTER I 

Revenue impact range 

(%) 

Number of 

small entities 

Percent of 

small entities 

0 ≤ 1 ......................................................................................................................................................................... 1 100 

1 ≤ 3 ......................................................................................................................................................................... 0 0 

Above 3 .................................................................................................................................................................... 0 0 

Total .................................................................................................................................................................. 1 100 

According to our analysis, 80.6 

percent of subchapter M entities will 

have an annual impact to revenue of 1 

percent or less. Approximately 14.7 

percent will have an annual impact to 

revenue between 1 and 3 percent. The 

remaining 4.7 percent will have an 

annual impact to revenue greater than 3 

percent. For subchapter I entities, our 

analysis shows a less than 1 percent 

impact to annual revenue for all small 

entities. 

(5) A description of the projected 

reporting, recordkeeping, and other 

compliance requirements of the rule, 

including an estimate of the classes of 

small entities which will be subject to 

the requirement and the type of 

professional skills necessary for 

preparation of the report or record. 

This final rule calls for no new 

reporting, recordkeeping, or other 

compliance requirements. 

(6) A description of the steps the 

agency has taken to minimize the 

significant economic impact on small 

entities consistent with the stated 

objectives of applicable statutes, 

including a statement of the factual, 

policy, and legal reasons for selecting 

the alternative adopted in the final rule 

and why each of the other significant 

alternatives to the rule considered by 

the agency which affect the impact on 

small entities was rejected. 

This final rule implements section 

815 of CGAA 2018. The CGAA 2018 

mandates the revision of towing vessel 

inspection user fees if there are 

differences in costs to the Government. 

As such, the Coast Guard has no 

discretion to offer alternatives that 

minimize the impact on small entities 

while accomplishing the stated 

objective of the statute. 

Small businesses may send comments 

on the actions of Federal employees 

who enforce, or otherwise determine 

compliance with, Federal regulations to 

the Small Business and Agriculture 

Regulatory Enforcement Ombudsman 

and the Regional Small Business 

Regulatory Fairness Boards. The 

Ombudsman evaluates these actions 

annually and rates each agency’s 

responsiveness to small business. If you 

wish to comment on actions by 

employees of the Coast Guard, call 1– 

888–REG–FAIR (1–888–734–3247). 

The Coast Guard will not retaliate 

against small entities that question or 

complain about this rule or any policy 

or action of the Coast Guard. 

Conclusion 

In conclusion, we estimate that 80.6 

percent of entities under 46 CFR 

subchapter M with revenue data will 

have an annual impact to revenue of 1 

percent or less. Approximately 14.7 

percent will have an annual impact to 

revenue between 1 and 3 percent. The 

remaining 4.7 percent will have an 

annual impact to revenue greater than 3 

percent. For entities under 46 CFR 

subchapter I, our analysis shows a less 

than 1 percent impact to annual revenue 

for all small entities. We also discussed 

several regulatory alternatives, 

including our preferred alternative. Our 

preferred alternative is to: (1) update the 

user fee for seagoing towing vessels; (2) 

revise the user fee for other inspected 

towing vessels; and (3) establish fees for 

towing vessels using the ACP, SIP, or 

TSMS options. Owners and operators of 

vessels using the ACP, SIP, or TSMS 

option will pay a lower fee than owners 

and operators of vessels that use the 

traditional Coast Guard inspection 

option. 

C. Assistance for Small Entities 

Under section 213(a) of the Small 

Business Regulatory Enforcement 

Fairness Act of 1996, Public Law 104– 

121, we offer to assist small entities in 

understanding this final rule so that 

they can better evaluate its effects on 

them and participate in the rulemaking. 

The Coast Guard will not retaliate 

against small entities that question or 

complain about this final rule or any 

policy or action of the Coast Guard. 

Small businesses may send comments 

on the actions of Federal employees 

who enforce, or otherwise determine 

compliance with, Federal regulations to 

the Small Business and Agriculture 

Regulatory Enforcement Ombudsman 

and the Regional Small Business 

Regulatory Fairness Boards. The 

Ombudsman evaluates these actions 

annually and rates each agency’s 

responsiveness to small business. If you 

wish to comment on actions by 

employees of the Coast Guard, call 1– 

888–REG–FAIR (1–888–734–3247). 

D. Collection of Information 

This final rule calls for no new or 

revised collection of information under 


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32https://www.dhs.gov/sites/default/files/ 

publications/DHS_Instruction%20Manual%20023- 

01-001-01%20Rev%2001_

508%20Admin%20Rev.pdf (accessed July 10, 

2023). 

the Paperwork Reduction Act of 1995, 

44 U.S.C. 3501–3520. 

E. Federalism 

A rule has implications for federalism 

under Executive Order 13132 

(Federalism) if it has a substantial direct 

effect on States, on the relationship 

between the National Government and 

the States, or on the distribution of 

power and responsibilities among the 

various levels of government. We have 

analyzed this rule under Executive 

Order 13132 and have determined that 

it is consistent with the fundamental 

federalism principles and preemption 

requirements described in Executive 

Order 13132. Our analysis follows. 

It is well settled that States may not 

regulate in categories reserved for 

regulation by the Coast Guard. It is also 

well settled that all of the categories 

covered in 46 U.S.C. 3306, 3703, 7101, 

and 8101 (design, construction, 

alteration, repair, maintenance, 

operation, equipping, personnel 

qualification, and manning of vessels), 

as well as the reporting of casualties and 

any other category in which Congress 

intended the Coast Guard to be the sole 

source of a vessel’s obligations, are 

within the field foreclosed from 

regulation by the States. See the 

Supreme Court’s decision in United 

States v. Locke and Intertanko v. Locke, 

529 U.S. 89, 120 S.Ct. 1135 (2000). 

Therefore, because the States may not 

regulate within these categories, this 

rule is consistent with the fundamental 

federalism principles and preemption 

requirements described in Executive 

Order 13132. 

F. Unfunded Mandates 

The Unfunded Mandates Reform Act 

of 1995, 2 U.S.C. 1531–1538, requires 

Federal agencies to assess the effects of 

their discretionary regulatory actions. In 

particular, the Act addresses actions 

that may result in the expenditure by a 

State, local, or tribal government, in the 

aggregate, or by the private sector of 

$100,000,000 (adjusted for inflation) or 

more in any one year. Although this 

final rule will not result in such 

expenditure, we do discuss the effects of 

this rule elsewhere in this preamble. 

G. Taking of Private Property 

This final rule will not cause a taking 

of private property or otherwise have 

taking implications under Executive 

Order 12630 (Governmental Actions and 

Interference with Constitutionally 

Protected Property Rights). 

H. Civil Justice Reform 

This final rule meets applicable 

standards in sections 3(a) and 3(b)(2) of 

Executive Order 12988 (Civil Justice 

Reform) to minimize litigation, 

eliminate ambiguity, and reduce 

burden. 

I. Protection of Children 

We have analyzed this final rule 

under Executive Order 13045 

(Protection of Children from 

Environmental Health Risks and Safety 

Risks). This final rule is not an 

economically significant rule and will 

not create an environmental risk to 

health or risk to safety that might 

disproportionately affect children. 

J. Indian Tribal Governments 

This final rule does not have tribal 

implications under Executive Order 

13175 (Consultation and Coordination 

with Indian Tribal Governments), 

because it will not have a substantial 

direct effect on one or more Indian 

tribes, on the relationship between the 

Federal Government and Indian tribes, 

or on the distribution of power and 

responsibilities between the Federal 

Government and Indian tribes. 

K. Energy Effects 

We have analyzed this final rule 

under Executive Order 13211 (Actions 

Concerning Regulations That 

Significantly Affect Energy Supply, 

Distribution, or Use). We have 

determined that it is not a ‘‘significant 

energy action’’ under that order because 

it is not a ‘‘significant regulatory action’’ 

under Executive Order 12866 and is not 

likely to have a significant adverse effect 

on the supply, distribution, or use of 

energy. 

L. Technical Standards 

The National Technology Transfer 

and Advancement Act, codified as a 

note to 15 U.S.C. 272, directs agencies 

to use voluntary consensus standards in 

their regulatory activities unless the 

agency provides Congress, through 

OMB, with an explanation of why using 

these standards would be inconsistent 

with applicable law or otherwise 

impractical. Voluntary consensus 

standards are technical standards (for 

example, specifications of materials, 

performance, design, or operation; test 

methods; sampling procedures; and 

related management systems practices) 

that are developed or adopted by 

voluntary consensus standards bodies. 

This rule does not use technical 

standards. Therefore, we did not 

consider the use of voluntary consensus 

standards. 

M. Environment 

We have analyzed this final rule 

under Department of Homeland 

Security Management Directive 023–01, 

Rev. 1, associated implementing 

instructions, and Environmental 

Planning COMDTINST 5090.1 (series), 

which guide the Coast Guard in 

complying with the National 

Environmental Policy Act of 1969 (42 

U.S.C. 4321–4370f), and have made a 

determination that this action is one of 

a category of actions that do not 

individually or cumulatively have a 

significant effect on the human 

environment. A Record of 

Environmental Consideration 

supporting this determination is 

available in the docket. For instructions 

on locating the docket, see the 

ADDRESSES section of this preamble. 

This final rule is categorically excluded 

under paragraphs L54 and L57 of 

Appendix A, Table 1 of DHS Instruction 

Manual 023–01–001–01, Rev 1.32

Paragraph L54 pertains to regulations 

that are editorial or procedural. 

Paragraph L57 pertains to regulations 

concerning manning, documentation, 

admeasurement, inspection, and 

equipping of vessels. 

This final rule updates the existing 

user fee for seagoing towing vessels that 

are 300 gross tons or more and 

establishes specific user fees for other 

towing vessels that have more recently 

become subject to inspection. 

List of Subjects in 46 CFR Part 2 

Marine safety, Reporting and 

recordkeeping requirements, Vessels. 

For the reasons discussed in the 

preamble, the Coast Guard amends 46 

CFR part 2 as follows: 

PART 2—VESSEL INSPECTIONS 

■ 1. The authority citation for part 2 is 

revised to read as follows: 

Authority: Sec. 622, Pub. L. 111–281; 33 

U.S.C. 1903; 43 U.S.C. 1333; 46 U.S.C. 2103, 

2110, 3306, 3703, 70034; DHS Delegation No. 

00170.1, Revision No. 01.3, paragraph 

(II)(77), (90), (92)(a), (92)(b); E.O. 12234, 45 

FR 58801, 3 CFR, 1980 Comp., p. 277, sec. 

1–105. 

■ 2. Amend § 2.10–25 by: 

■ a. Revising the definition of ‘‘Seagoing towing vessel’’; and 

■ b. Adding the definitions in 

alphabetical order for ‘‘Alternative 

Compliance Program option’’, ‘‘Annual 

vessel inspection fee’’, ‘‘Coast Guard 

option’’, ‘‘Streamlined Inspection 

Program option’’, ‘‘Towing Safety 

Management System option’’, and 

‘‘Towing vessel’’. 


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The additions and revision read as 

follows: 

§ 2.10–25 Definitions. 

* * * * * 

Alternative Compliance Program 

option means the option described in 46 

CFR part 8, subpart D. 

Annual vessel inspection fee means 

the fee charged for inspection and 

related services provided by the Coast 

Guard to determine whether a vessel 

meets the requirements to maintain its 

Certificate of Inspection. 

Coast Guard option means an option 

used by— 

(1) A vessel inspected under a 46 CFR 

subchapter that is not participating in 

the Alternative Compliance Program 

described in 46 CFR part 8, subpart D; 

(2) A vessel inspected under a 46 CFR 

subchapter that is not participating in 

the Streamlined Inspection Program 

described in 46 CFR part 8, subpart E; 

or 

(3) A vessel inspected under 46 CFR 

subchapter M that is not participating in 

the Towing Safety Management System 

option described in 46 CFR part 138. 

* * * * * 

Seagoing towing vessel means a 

commercial vessel 300 gross tons or 

more engaged in or intending to engage 

in the service of pulling, pushing, or 

hauling alongside, or any combination 

of pulling, pushing, or hauling 

alongside, and that makes voyages 

beyond the Boundary Line as defined by 

46 U.S.C. 103, and has been issued a 

Certificate of Inspection under the 

provisions of subchapter I of this 

chapter. 

* * * * * 

Streamlined Inspection Program 

option means the option described in 46 

CFR part 8, subpart E. 

* * * * * 

Towing Safety Management System 

option means the option described in 46 

CFR part 138 for towing vessels subject 

to 46 CFR subchapter M. 

Towing vessel means a commercial 

vessel engaged in or intending to engage 

in the service of pulling, pushing, or 

hauling alongside, or any combination 

of pulling, pushing, or hauling 

alongside. 

* * * * * 

■ 3. Amend § 2.10–101, in Table 2.10– 

101, by: 

■ a. Revising the ‘‘Sea-going Towing 

Vessels’’ entry and, in order, adding the 

subentries ‘‘Coast Guard option’’, 

‘‘Alternative Compliance option’’, and 

‘‘Streamlined Inspection Program 

option’’; and 

■ b. Adding an entry for ‘‘Towing 

Vessels (Inspected under 46 CFR 

Subchapter M)’’ and, in order, adding 

the subentries ‘‘Coast Guard option’’ 

and ‘‘Towing Safety Management 

System option’’. 

The addition and revision read as 

follows: 

§ 2.10–101 Annual vessel inspection fee. 

* * * * * 

TABLE 2.10–101—ANNUAL VESSEL INSPECTION FEES FOR U.S. AND FOREIGN VESSELS REQUIRING A CERTIFICATE OF

INSPECTION

*******

Seagoing Towing Vessels (Inspected under 46 CFR Subchapter I): 

Coast Guard option .................................................................................................................................................................................................. 2,747 

Alternative Compliance Program option .................................................................................................................................................................. 1,850 

Streamlined Inspection Program option ................................................................................................................................................................... 2,260 

*******

Towing Vessels (Inspected under 46 CFR Subchapter M): 

Coast Guard option .................................................................................................................................................................................................. 2,184 

Towing Safety Management System option ............................................................................................................................................................ 973 

*******

* * * * * 

Dated: December 18, 2023. 

W.R. Arguin, 

Rear Admiral, U.S. Coast Guard, Assistant 

Commandant for Prevention Policy. 

[FR Doc. 2023–28112 Filed 12–27–23; 8:45 am] 

BILLING CODE 9110–04–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Part 1 

[MD Docket Nos. 22–301, 23–159; FCC 23– 

34; FR ID 191170] 

Review of the Commission’s 

Assessment and Collection of 

Regulatory Fees; Assessment and 

Collection of Regulatory Fees for 

Fiscal Year 2023 

AGENCY: Federal Communications 

Commission. 

ACTION: Final action. 

SUMMARY: In this document, the Federal 

Communications Commission 

(Commission) amends its rules to 

simplify and streamline the 

Commission’s procedures for filing 

waiver, deferral, and reduction requests 

for regulatory fees and the procedures 

for filing installment payment requests 

for all debt owed to the Commission, 

including regulatory fees, to reduce 

administrative expenses and ensure 

more rapid disposition of such requests. 

DATES: The revision to the 

Commission’s waiver procedure, 47 CFR 

1.1166, became effective on October 16, 

2023. The revision to 47 CFR 1.1914 is 

delayed indefinitely until after review 

by the Office of Management and 

Budget (OMB), as required by the 

Paperwork Reduction Act. 

FOR FURTHER INFORMATION CONTACT: 

Roland Helvajian, Office of Managing 

Director, at (202) 418–0444. 

SUPPLEMENTARY INFORMATION: This is a 

summary of the Commission’s Report 

and Order (May Report and Order), in 

MD Docket Nos. 22–301 and 23–159, 

FCC 23–34, adopted on May 12, 2023, 

and released on May 15, 2023, as 

amended by the sua sponte technical 

corrections the Commission made to the 

language of 47 CFR 1.1166 and 1.1914 

in the Commission’s Report and Order, 

FCC 23–66, MD Docket Nos. 22–310 and 

23–159, adopted and released on August 

10, 2023 (August Report and Order), 88 

FR 63694, (Sept. 15, 2023). The full text 

of the Commission’s May Report and 

Order and August Report and Order are 

available for public inspection by 

downloading the text from the 

Commission’s website at https://

www.fcc.gov/licensing-databases/fees/ 

regulatory-fees. 

I. Administrative Matters 

A. Final Paperwork Reduction Act of 

1995 Analysis 

1. The Commission adopted 

amendments to 47 CFR 1.1166 and 


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